Bailout terms: good idea or not?

[Deleted]

40% of the total money are from foreign companies which use the low taxation.
Tax them, hell 1/3 are russian companies anyway. I couldnt care less if Cyprus cant manage their own finance, let alone tax companies being dicks.

So fucking fed up of southern Europe and their shitty behaviour.
We always have to bail them out.

Right, but whoever came up with this solution is fucked in the head.

They pretty much just undermined any faith there was in deposit insurance institutions. People in PIIGS-nations will start withdrawing their funds and moving them to banks in safer countries.

These idiot EU politicians are trying to cause a continent wide run on the banks.

[Deleted]

They pretty much just undermined any faith there was in deposit insurance institutions. People in PIIGS-nations will start withdrawing their funds and moving them to banks in safer countries.

These idiot EU politicians are trying to cause a continent wide run on the banks.

Funny. "Any faith there was in deposit insurance institutions" was faith that the stupid northern EU taxpayers take up the bill for the south again and again and again. That faith can't shatter early enough.

Cyprus is a rich country and a country with highly questionable tax laws, they shouldn't have been given a bailout at all. Fix your effing own mess.

[Deleted]

Funny. "Any faith there was in deposit insurance institutions" was faith that the stupid northern EU taxpayers take up the bill for the south again and again and again. That faith can't shatter early enough.

Cyprus is a rich country and a country with highly questionable tax laws, they shouldn't have been given a bailout at all. Fix your effing own mess.

Not giving them a bailout would've been much better than this.

[Kalis]

Funny. "Any faith there was in deposit insurance institutions" was faith that the stupid northern EU taxpayers take up the bill for the south again and again and again. That faith can't shatter early enough.

Cyprus is a rich country and a country with highly questionable tax laws, they shouldn't have been given a bailout at all. Fix your effing own mess.

Cyprus only collapsed due to their exposure to the problems in Greece.

They could sort out their own mess, by getting more Russian and Chinese investment, but the EU don't like that idea.

[Bakis]

Cyprus only collapsed due to their exposure to the problems in Greece.

They could sort out their own mess, by getting more Russian and Chinese investment, but the EU don't like that idea.

Yes, there are no blame whatsoever to be put on Cyprus itself they are the victim here...
Gotcha.

[DEATHETERNAL]

Of that sum, an estimated €5.8bn is to be funded by, "People with less than €100,000 in their Cypriot bank accounts will have to pay a one-time tax of 6.75 percent, those owning more money will lose 9.9 percent."

A wealth tax like this is the purest form of theft. If the government can just go around and confiscate a percent of everything everyone owns (and what has likely already been taxed at least once), economic liberty is dead and such a society is a tyrannical totalitarian state. I would advise anyone who is a member of that society to cut their losses, and leave. Find some ostensibly free society to join.

[Deleted]

All the really well off will just move there money around or invest it.

I guess it could also double up as a way to get the economy moving, people are scared the government will take all their money so they buy property/expensive goods.

[Kalis]

Yes, there are no blame whatsoever to be put on Cyprus itself they are the victim here...
Gotcha.

Never said they were the victim, but if you are a small economy that has a lot of exposure to a large economy, and that economy goes tits up, then what do you expect will happen?

Look at what happens to the whole EU when the US struggles, it's just the same.

Due to geography and history, Cyprus has a lot of exposure to Greece and the Middle East - not exactly the places you would want to invest in today.

More recently they have sought Russian investment, and it has been hugely beneficial to the economy, but the EU wants to limit that source of investment. So where should Cyprus turn if they are being told not to accept Russian or Chinese investment, and their traditional partners are all fucked?

[Deleted]

Not giving them a bailout would've been much better than this.

Agree with you here, even from an opposite perspective.

---------- Post added 2013-03-17 at 03:46 PM ----------

Never said they were the victim, but if you are a small economy that has a lot of exposure to a large economy, and that economy goes tits up, then what do you expect will happen?

Look at what happens to the whole EU when the US struggles, it's just the same.

Due to geography and history, Cyprus has a lot of exposure to Greece and the Middle East - not exactly the places you would want to invest in today.

More recently they have sought Russian investment, and it has been hugely beneficial to the economy, but the EU wants to limit that source of investment. So where should Cyprus turn if they are being told not to accept Russian or Chinese investment, and their traditional partners are all fucked?

And why can the EU dictate you that? Because you are begging for subsidies to prop up your banks. I'm not convinced that Russians were really investing in industry or infrastructure and not just dodging tax, but if you're being told to act against your interest, you need to say no like Iceland did, and not just vote the same complacent people in (this applies to us as well).